Internal controls are vital in guarding against fraud

Description

Abstract: Traditionally, dealerships have been susceptible to fraud due to their relatively small financial and accounting staffs, the large sums of cash kept on hand, a high volume of transactions, and their highly marketable inventories. Growing sales and revenue in today’s environment can present even more opportunities for dishonest employees to embezzle funds. This article explains some of the key principles governing the internal controls that guard against fraud. A sidebar discusses a list of 50 common dealership embezzlement schemes.